Israel Folau has been found guilty of a high-level breach of Rugby Australia's code of conduct.
The shamed Wallabies star is fighting for his rugby career after sparking uproar last month by claiming on social media that homosexuals are going to hell unless unless they repent.
After showing no signs of backing down, the 30-year-old has now been found guilty of breaching the Wallabies' code of conduct.
A panel of three people have found him guilty of a high-level breach, but no verdict on the consequences Folau will face has been released, the Sydney Morning Herald reports. A high-level breach is the only level that allows the termination of a contract.
A code of conduct hearing began last week, eventually lasting three days.
The panel, made up of chair John West QC, Rugby Australia representative Kate Eastman SC and the RUPA-appointed John Boultbee, have now retired to decide on a sanction.
It comes as New South Wales Waratahs chairman Roger Davis has called for "common sense".
Mr Davis told Nine media: "This is a no-win situation for the game and fans and I’d like to see it resolved as quickly as possible.
"I think a settlement is a common sense approach ... it would be smart. If this goes for a long time there are definitely no winners.
"Let’s see if we can bring some common sense to the table and work out a solution that keeps everyone happy but with a three-party deal that’s not as easy as it sounds."
The full-back s fighting for his rugby life after Wallabies bosses signalled their intention to tear up his $4 million contract.
Australian rugby already faces an $8 million dollar loss this year, largely due to limited home test matches because of the World Cup.
And, with Folau seeking a full payout if he loses his contract, the Australian Daily Telegraph report a $12 million hit would leave Rugby Australia "on the precipice of insolvency".
